Finances - Suspension of the debt rule due to flooding is controversial
The debate on easing the debt brake, which was reignited by the SPD in the federal government in view of the foreseeable flood damage, has triggered mixed reactions in Mecklenburg-Vorpommern. The AfD rejected the proposal. " Floods and heavy rainfall events have always been part of our natural world context. A sustainable state creates reserves for such dramatic events in advance and invests in preventative infrastructure in affected regions," said AfD member of the state parliament Martin Schmidt on Thursday in Schwerin, explaining the rejection. He suggested using part of the insurance tax for disaster prevention.
Torsten Koplin from the left-wing parliamentary group in the Schwerin state parliament, on the other hand, supported the proposal to suspend the debt brake regulation due to the tense flood situation. "This is urgently needed to deal with the disaster situation and its consequences. This is also the assessment of the ranks of civil protection, such as DRK President Gerda Hasselfeldt, who is calling for massive investment in civil protection," explained Koplin. He warned against "riding on principles". If the traffic light government in Berlin does not respond to acute emergencies with the necessary measures and gives priority to the debt brake, it is harming the country and the population. "At the same time, the narrow-minded debt brake must finally be fundamentally put to the test and actually overcome in its current form," demanded Koplin with a view to the investments required for the desired ecological restructuring.
Previously, Mecklenburg-Western Pomerania's Minister President Manuela Schwesig(SPD) had also repeatedly spoken out in favor of changes to the current debt brake, which only allows new debt in very limited emergency situations. "The federal government must be able to finance future investments, for example in renewable energies, through loans," emphasized Schwesig. She believes that a debt rule is important, but that it should be limited to social and personnel expenditure and allow loans for investments that will benefit future generations.
In view of the tense flood situation in parts of Germany, the head of the SPD parliamentary group in the Bundestag, Rolf Mützenich, pleaded for possible federal aid to be excluded from the debt brake. Mützenich told the digital media company Table.Media (Thursday) that the partners in the traffic light system would be "well advised to openly address the question of whether the exemption under Article 115 should not also be applied to this event in addition to the Ukraine and the Ahr Valley disaster". In the case of the floods, a damage assessment was necessary first, but it was foreseeable that the additional funds for damage compensation, THW, disaster control and dyke renovations would financially overburden states and municipalities.
As a result of a budget ruling by the Federal Constitutional Court, which created billions of euros in gaps in the federal budget, the Bundestag suspended the debt brake again for 2023 in mid-December - for the fourth time in a row. The coalition government does not want to suspend the debt brake for the 2024 financial year for the time being. However, an exception is to be examined for the consequences of the flood disaster in the Ahr valley in 2021. This involves around 2.5 billion euros. In the event of a change in the situation in Ukraine, the traffic light government also reserves the right to suspend it at a later date and to take out additional loans.
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- In the state parliament of Mecklenburg-Vorpommern, the AfD's Martin Schmidt argued against suspending the debt brake due to the floods, advocating for advance preparations and preventative infrastructure investments with insurance tax funds.
- Torsten Koplin from the left-wing parliamentary group in Schwerin supported the proposal to suspend the debt brake regulation due to the urgent need to address the flood situation and its consequences.
- Gerda Hasselfeldt, DRK President, called for massive investment in civil protection in response to the flood disaster, echoing the need for action from the coalition government.
- Manuela Schwesig, the SPD's Minister President in Mecklenburg-Western Pomerania, had previously advocated for changes to the debt brake, believing that loans ought to be permitted for investments in sustainable energy, among other things.
- Rolf Mützenich, SPD's head of the Bundestag parliamentary group, suggested that potential federal aid for flood damage should be excluded from the debt brake, as was the case for the Ukraine and Ahr Valley disasters.
- The Federal Constitutional Court's budget ruling created billions of euros in deficits in the federal budget, which prompted the Bundestag to temporarily suspend the debt brake in 2023 for the fourth time.
- The coalition government, however, does not currently plan to suspend the debt brake for the 2024 financial year, considering an exception only for the Ahr Valley flood disaster's aftermath.
- Under normal circumstances, the debt brake rule restricts new debt for the federal government to rare emergencies situations, but a change in approach might be necessary to finance investments in Germany's future sustainability.
- In view of the heavy floods affecting various parts of Germany, parties and federal states are urging the traffic light government to prioritize disaster response measures over strict adherence to the debt brake rule.
- Amidst concerns about potential financial overburdening of states and municipalities, it's crucial for the government to carefully assess and manage the resources required to mitigate flood damage and ensure the country's long-term recovery.
Source: www.stern.de
